Tips Industries Limited was founded in 1975 and is one of India’s largest entertainment companies engaged in the production, promotion and distribution of music and films.
Initially, the company dealt in gramophone records, recorded audio cassettes, blank audio cassettes and replicated CDs. The company owns more than 3500 titles and copyrights of numerous Hindi films, of which at least 10 are among the 10 million sellers, more than 15 have sales of more than 5 million and another 20 have sales of around one million. Tips also owns the soundtrack copyrights to at least 50 Hindi films.
Tips Industries has its own manufacturing facility and distribution system. These factories have digital mastering facilities, operate on a just-in-time inventory management system and utilise in-house logistics facilities to supply more than 1,50,000 cassettes per day to the Indian market. The company also has a global presence with offices in the USA, Dubai and the UK.
Tips Industries Buyback 2024 Detail
| Issue Period | April 26, 2024 – May 3, 2024 |
| Security Name | Tips Industries Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 595,000 (0.46 % of Total number of equity Shares) |
| Issue Size (Amount) | ₹37.19 Crores |
| Buyback Price | ₹625 per share |
| Face Value | ₹1 per share |
| Listing At | BSE, NSE |
Tips Industries Buyback 2024 Issue Timetable
| Last Date to buy shares | April 19, 2024 |
| Record Date | April 22, 2024 |
| Offer Opens On | April 26, 2024 |
| Last Date for receipt of Tender Forms | May 3, 2024 |
| Offer Closes On * | May 3, 2024 |
| Finalisation of Buyback Acceptance | May 10, 2024 |
| Last Date for settlment of bids | May 10, 2024 |
| Last Date for Extinguishment of Shares | May 23, 2024 |
* Last Date to Tender shares on Zerodha : May 2, 2024
Buyback Ratio
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 11 Equity Shares out of every 444 Fully paid-up Equity Shares held on the Record Date. | 89,250.00 |
| General Category for all other Eligible Shareholders | 11 Equity Shares out of every 931 Fully paid-up Equity Shares held on the Record Date. | 505,750.00 |
Company Financials
Tips Industries Limited Financial Information (Restated)
Tips Industries Limited’s revenue increased by 38.43% and profit after tax (PAT) rose by 18.54% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 227.66 | 192.70 | 146.78 | 150.10 |
| Revenue | 187.39 | 192.14 | 138.80 | 95.42 |
| Profit After Tax | 101.40 | 76.52 | 64.56 | 43.46 |
| Net Worth | 192.41 | 135.96 | 102.16 | 100.91 |
| Amount in ₹ Crore | ||||
Stock price at BSE (in preceding 3 months)
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Mar-2024 | 527.95 | 402.40 | 477.20 |
| Feb-2024 | 531.10 | 395.55 | 459.46 |
| Jan-2024 | 438.35 | 335.60 | 385.52 |
Stock price at NSE (in preceding 3 months)
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Mar-2024 | 529.00 | 401.15 | 477.33 |
| Feb-2024 | 530.95 | 396.00 | 459.44 |
| Jan-2024 | 438.40 | 335.95 | 385.54 |
Necessity of the Issue
Buyback is being undertaken, inter-alia, for the following reasons:
- The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders;
- The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve the allocation of the number of Equity Shares as per their entitlement or 15% of the number of Equity Shares to be bought back whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would be classified as “small shareholders” as per Regulation 2(i)(n) of the SEBI Buyback Regulations;
- The Buyback may help in improving its earnings per share and return on equity, by reduction in the equity base, thereby leading to a long-term increase in shareholders’ value; and
- The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
Company Contact Information
Tips Industries Limited
601, Durga Chambers,
6th Floor, Linking Road,
Khar (West), Mumbai – 400 052
Phone: +91 22 6643 1188
Email: response@tips.in
Website: https://tips.in/